So you’ve been made a trustee of a Charity run Preschool, do you know your responsibilities?
Trustees of a preschool charity in the UK have significant legal and ethical responsibilities. These duties are primarily governed by the Charities Act 2011 and guidance from the Charity Commission for England and Wales. While the specifics might vary slightly depending on the preschool’s governing document (e.g., constitution, articles of association), the core responsibilities are broadly the same.
Here’s a breakdown of the key charitable trust responsibilities for preschool charity trustees:
1. Ensure the Charity is Carrying Out Its Purposes for the Public Benefit:
- Understanding the charitable objects: Trustees must clearly understand the preschool’s stated purposes (e.g., providing high-quality early years education, promoting child development, supporting families) as outlined in its governing document.
- Delivering public benefit: They must ensure that all activities of the preschool contribute directly to these purposes and demonstrably benefit the public, or a sufficient section of the public (in this case, children and their families). This means regularly reviewing the preschool’s work and its impact.
- Avoiding “wrong” spending: Funds must only be used to further the charity’s stated purposes. Misuse of funds can lead to personal liability for trustees.
2. Comply with the Charity’s Governing Document and the Law:
- Adherence to the governing document: Trustees must ensure the preschool operates strictly within the rules and powers set out in its constitution or articles of association.
- Compliance with charity law: This includes fulfilling all requirements of the Charities Act 2011 and other relevant charity regulations, such as submitting annual returns and accounts to the Charity Commission.
- Compliance with other relevant laws: Preschools operate under additional legal frameworks, including:
- Early Years Foundation Stage (EYFS) requirements: Ensuring the preschool meets all statutory welfare and learning requirements for early years providers.
- Ofsted regulations: Cooperating with Ofsted inspections and ensuring all suitability checks (e.g., DBS checks) for staff and trustees are up-to-date.
- Safeguarding: Implementing robust safeguarding policies and procedures to protect children from harm.
- Health and Safety: Ensuring a safe environment for children, staff, and visitors.
- Employment law: Fulfilling obligations as an employer, including fair recruitment, pay, and working conditions for preschool staff.
- Data Protection (GDPR): Protecting personal data of children, families, and staff.
- Equality and Diversity: Ensuring the preschool’s policies and practices promote inclusion and remove barriers for all children and families.
3. Act in the Charity’s Best Interests:
- Making informed decisions: Trustees must make balanced, well-informed decisions that are solely for the benefit of the preschool and its beneficiaries, considering both short-term and long-term implications.
- Avoiding conflicts of interest: Trustees must identify and manage any potential conflicts between their personal interests (or those of connected parties) and their duties to the charity. This includes not receiving unauthorised personal benefits from the charity.
- Collective responsibility: Decisions are made by the trustee board collectively. Even if a trustee has a specific area of expertise, all trustees share ultimate responsibility for all decisions
4. Manage the Charity’s Resources Responsibly:
- Sound financial management: This is crucial. Trustees must ensure the preschool’s assets (money, property, equipment) are protected, used efficiently, and solely for charitable purposes.
- Financial controls: Implementing and monitoring appropriate financial procedures and safeguards to prevent fraud, theft, or misuse of funds.
- Budgeting and planning: Developing and overseeing budgets, ensuring financial solvency, and planning for future needs and sustainability.
- Fundraising: Ensuring fundraising activities are ethical, transparent, and comply with all relevant regulations.
- Risk management: Identifying and mitigating risks to the charity’s assets, reputation, and beneficiaries.
5. Act with Reasonable Care and Skill:
- Diligence and engagement: Trustees are expected to use reasonable care and skill, committing sufficient time and energy to their role (e.g., attending meetings, preparing thoroughly).
- Utilising skills and seeking advice: Trustees should apply their own skills and experience, and seek appropriate professional advice (e.g., legal, financial, HR) when necessary.
- Oversight of operations: While day-to-day management is often delegated to staff (e.g., the preschool manager), trustees retain ultimate responsibility and must provide strategic oversight and challenge. This often involves supervising and appraising the manager.
6. Ensure the Charity is Accountable:
- Transparency: Being open and accountable to the Charity Commission, beneficiaries, funders, parents, and the wider public.
- Reporting: Meeting all legal accounting and reporting requirements, including preparing and filing annual accounts and reports.
- Good governance: Maintaining effective governance practices, clear policies, and accurate records.
Specific Considerations for Preschool Charities:
- Ofsted Requirements: Trustees must be aware of and ensure compliance with all Ofsted regulations, including suitability checks (DBS), staff qualifications, child-to-staff ratios, and curriculum requirements.
- Parental Engagement: Many preschool charities have strong ties with parents, and trustees may play a role in fostering this relationship and ensuring the preschool meets the needs of the community it serves.
- Staffing: As employers, trustees are responsible for the well-being and effective management of preschool staff.
- Safeguarding: This is paramount for any organisation working with children. Trustees must ensure a robust safeguarding policy is in place, understood, and adhered to by all staff and volunteers.
It is highly recommended that all trustees of a preschool charity in the UK familiarise themselves thoroughly with the Charity Commission’s core guidance, particularly “The Essential Trustee: What you need to know, what you need to do (CC3)”.